- EUR/USD manages to hold above 1.1400, with a modest bullish bias.
- Weaker USD amid pullback in yields and risk appetite.
The EUR/USD trades sideways between 1.1425 and 1.1445 on Wednesday with a bullish bias, thanks to a weaker dollar across the board and amid tightening expectations from the European Central Bank.
DXY and yields down, stock up
The US dollar index (DXY) fell 0.20% on Wednesday affected by the drop in US yields that moved away from multi-month highs. The 10-year Treasury bond yield stands at 1.92% and the 30-year yield at 2.22%. Also higher stock prices weigh on the dollar. On Wall Street, the Dow Jones is back at 0.82% and the Nasdaq at 1.53%.
Market participants await Thursday’s US CPI reading. The index is expected to have risen in January to 7.3% (annual rate). The numbers will likely influence market expectations of Federal Reserve policy.
EUR/USD is up more than 150 pips from its level a week ago due to a change in ECB tightening expectations. The rally found resistance at the January high at 1.1480/85. The mentioned area continues to be a key level which, if broken, would clear the way for 1.1500 and beyond.
In the very short term, as long as it is above 1.1425, the intraday bullish bias is likely to remain. A drop below would expose 1.1400 again. The next support below is located at 1.1370/80, the last defense to the current positive short-term outlook for the Euro.
Technical levels
EUR/USD
| Panorama | |
|---|---|
| Last Price Today | 1.1438 |
| Today’s Daily Change | 0.0019 |
| Today’s Daily Change % | 0.17 |
| Today’s Daily Opening | 1.1419 |
| Trends | |
|---|---|
| 20 Daily SMA | 1.1337 |
| 50 Daily SMA | 1.1321 |
| 100 Daily SMA | 1.1423 |
| 200 Daily SMA | 1.1671 |
| levels | |
|---|---|
| Previous Daily High | 1.1449 |
| Previous Daily Minimum | 1.1396 |
| Previous Maximum Weekly | 1.1484 |
| Previous Weekly Minimum | 1.1138 |
| Monthly Prior Maximum | 1.1483 |
| Previous Monthly Minimum | 1.1121 |
| Daily Fibonacci 38.2% | 1.1416 |
| Daily Fibonacci 61.8% | 1.1429 |
| Daily Pivot Point S1 | 1.1394 |
| Daily Pivot Point S2 | 1.1369 |
| Daily Pivot Point S3 | 1.1341 |
| Daily Pivot Point R1 | 1.1446 |
| Daily Pivot Point R2 | 1.1474 |
| Daily Pivot Point R3 | 1.1499 |
Source: Fx Street
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